- CBN said the review was necessary due to rising costs and the need to improve efficiency of ATM services
The Central Bank of Nigeria, CBN, has scrapped free withdrawals for customers using other banks’ Automated Teller Machines, ATMs.
WITHIN NIGERIA recalls that it was earlier pegged at three free withdrawals per month.
CBN said the review was necessary due to rising costs and the need to improve efficiency of ATM services.
By the new directive, “The three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.”
However, withdrawals made from a customer’s bank ATM will remain free.
Customers using another bank’s ATM will be charged N100 per N20,000 withdrawal – if the ATM is located within bank premises.
But for withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.
The surcharge, according to CBN, an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.
However, international ATM withdrawals would be charged at the exact rate set by the international acquirer.
The CBN circular, dated February 10, read in parts: “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.
“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
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